The physical gold settlement is two days after the trade date so wholesalers will be able to quickly gauge actual supply and demand.

Legendary investor, Jim Rogers, moved his young family to Singapore from New York in 2001. He believes Asia is the next economic hub. He said that in 1801 you moved to London, in 1901 you moved to New York, and in 2001 you move to Asia.

HONG KONG

Hong Kong is also vying to be the new east gold hub, but with the current democratic protests, we’ll have to see if Singapore offers more stability.

The protests in Hong Kong have been growing in size with rising uncertainty in the outcome.

Change is coming. World reserve currencies change hands at regular intervals and we’re due for one. There’s economic hardship for some people, usually the middle class and poor, in the process. There is usually political pressures and uncertainty for a short while.

Gold and silver have historically become safe havens at those times.

ALAN GREENSPAN AND CHINA

Alan Greenspan wrote in a September 29th Foreign Affairs article, published by the Council on Foreign Relations, that if China should use part of its $4 trillion foreign exchange reserves to buy enough gold to pass the U.S. as the world’s largest holder of monetary gold, that China’s currency “could take on unexpected strength”.

In the currency wars, isn’t it an advantage to have your currency weak against other currencies, not strong?

Greenspan predicted that as China is buying all this gold that the price of gold would rise, but it would “likely fall back” once China stopped buying.

In the currency wars, wouldn’t China be buying the gold to hedge against the loss of value of the U.S. currency they hold? In this case, buying gold to hedge against their close to $3Trillion U.S. dollars losing value because of inflation from all the Federal Reserve QE money printing?

The printing of more fiat currency means each dollar already in existence becomes worth less — so there’s inflation because everyone has more dollars to pay for the same goods.

So — isn’t China, as Jim Rickards has been saying in recent interviews and in his bestselling book The Death of Money, buying gold because the metal rises in value when the U.S. dollar falls in value?

So — isn’t China either holding value in the $3 Trillion worth of U.S. dollars they have or else holding value in the gold they buy with the U.S. dollars before those dollars lose value due to the inflation brought on by the excessive QE.

So — it almost looks like Greenspan is warning or suggesting that if China keeps stockpiling gold that it will both make the yuan undesirably strong and also not hedge against the devaluing of their U.S. dollars because the gold will fall back in price after they stop buying.

Almost looks like a reverse psychology article. Maybe it’s just me.

EBOLA AND GOLD

We have the U.S. with heavy debt and the first confirmed case of Ebola contracted (or at least becoming contagious) on U.S. soil, in Dallas, Texas. The next 21 days, the incubation period, will be important to watch. There is already a second person being monitored in Dallas, Texas.

There are conflicting reports regarding when a person is contagious or how easily it is transmitted. Health Canada website used to say, about a month ago when I looked, that it was suspected but never confirmed to be airborne, as primates in cages across a room contracted the virus without contact. The website removed that statement so perhaps they didn’t want to alarm people when it wasn’t confirmed.

The CDC states that it is not airborne and that it is only contagious after a person shows symptoms.